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Weak AUD expected to lift domestic travel

March 18, 2015 Headline News, Statistics & Trends 1 Comment Email Email

egtmedia59New TNS research unearths Australians’ motivations for domestic and international travel amidst the changing economic and retail landscape

Latest research findings released today by TNS reveal Australian’s renewed desire to relax, reconnect and rejuvenate through domestic travel experiences and indicate how the tourism sector may be impacted.

“Over the past five years, a high Australian dollar set against a weak US dollar made it difficult to justify the cost of an Australian holiday, particularly when overseas ‘shopping holidaysand luxury services and accommodation were so affordable,” said Ed Steiner, Head of Travel and Leisure at TNS Australia.

“Were now on the verge of a sea change where shifts in the economic landscape and Australiansrenewed interest in local R&R and food and shopping experiences create a significant opportunity for the travel and retail sectors. This opportunity is greatest for those businesses that understand the difference between cost and value.”

Sponsored by AMP Capital Shopping Centres, the TNS study serves as a business case for Australian retailers to capitalise on the expected domestic travel surge.   AMP Capital Shopping Centres Managing Director, Bryan Hynes said that the business has recognised the importance of the tourism dollar to its shopping centres.

“We know at our Gold Coast shopping centre, Pacific Fair, more than 40 per cent of our sales come from tourist dollars. We understand that the visitor economy is key to any successful shopping centre, especially in places like the Gold Coast, which has around 12 million visitors a year. This is why we are redeveloping the centre to be an attractive proposition for both tourists and residents.”

Some of the key themes that emerged from this year’s Domesticate report include: 

Shopping is a reason to travel in Australia?

While shopping has not traditionally been a motivator for domestic travel, nearly every Australian concedes that shopping is a part of all excursions: 85% enjoy general browsing and shopping in a shopping centre, 79% in an arts and crafts market and 66% in a farmer’s market. Similarly a majority go to the shopping centre for food and grocery (78%) or a quick bite to eat (76%). “Thats an enormous amount of traffic,” commented Steiner. “And while the quality of the Australian offer is not well regarded due to perceived higher prices and less range, these barriers are being eroded by new offers and a falling dollar.” 

Where to shop?

Markets proved to be universally enjoyed and the domain of the visitor economy. The study shows a strong desire for market experiences even by those who claim not to enjoy shopping. The unique items on offer, proximity to other experiences and open air environment are among the market’s primary draw cards. Steiner added: “Still though, to compete with international markets such as in Asia and Europe, the experience must be tied to the uniqueness of the locality. Shopping environments must match the destination”.

Short breaks are one of the cornerstones of domestic travel.

After being in decline from 2003 to 2008, domestic visitor nights has seen a consistent increase since 2009. For the year ending September 2014, overnight domestic travel was worth over $53.7 billion to the Australian economy, an uptick of over 4% year over year. As well there has been consistent growth in day trips since 2005.

TNS’s annual Domesticate study now in its eighth year explores consumer behaviours across Australia and New Zealand to identify motivations for domestic and international travel.

More details can be obtained

Written by : Peter  Watson

Currently there is "1 comment" on this Article:

  1. stingforever says:

    …the funny thing about statistics about visitor spend is, they actually compares dollar to dollar amount without factoring the cost of living and inflation… especially when you’re comparing more than half decade figures…

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